Business Standard

Sugar output in India set to fall on dry weather, says Kingsman

Related News

Sugar output in India, the world's second-biggest producer, may be less than forecast next year as a drought threatens to in some areas, lowering exports, broker said.

Production may total 25 million tonnes in the year starting October 1, compared with 25.5 million tonnes forecast in June, Kingsman said. The estimate matches those by the Indian Sugar Mills Association and the Ltd. Output this year is set to total 26 million tonnes, it said. A smaller crop and a rally in domestic prices may reduce the availability of Indian sugar for exports, potentially narrowing a global surplus and supporting prices. Overseas sales may slump 43 per cent to 2 million tonnes next season from 3.5 million tonnes this year, Kingsman said.

Sugar prices on the National Commodity & Derivatives Exchange Ltd in Mumbai surged 26 per cent since the end of May on speculation below-average monsoon rain in more than 50 per cent of India will hurt crops from cane to rice and cotton. Futures climbed to Rs 3,672 ($66) on August 4, the highest level since December 2010. The harvest in Maharashtra state, the biggest producer, may drop to 7.5 million tonnes to 7.6 million tonnes next year from 9 million tonnes this year, Kingsman said.

Read more on:   
|
|
|
|
|
|
|

Sugar output in India set to fall on dry weather, says Kingsman

Sugar output in India, the world's second-biggest producer, may be less than forecast next year as a drought threatens to cut yields in some areas, lowering exports, broker Kingsman SA said.

Sugar output in India, the world's second-biggest producer, may be less than forecast next year as a drought threatens to in some areas, lowering exports, broker said.

Production may total 25 million tonnes in the year starting October 1, compared with 25.5 million tonnes forecast in June, Kingsman said. The estimate matches those by the Indian Sugar Mills Association and the Ltd. Output this year is set to total 26 million tonnes, it said. A smaller crop and a rally in domestic prices may reduce the availability of Indian sugar for exports, potentially narrowing a global surplus and supporting prices. Overseas sales may slump 43 per cent to 2 million tonnes next season from 3.5 million tonnes this year, Kingsman said.

Sugar prices on the National Commodity & Derivatives Exchange Ltd in Mumbai surged 26 per cent since the end of May on speculation below-average monsoon rain in more than 50 per cent of India will hurt crops from cane to rice and cotton. Futures climbed to Rs 3,672 ($66) on August 4, the highest level since December 2010. The harvest in Maharashtra state, the biggest producer, may drop to 7.5 million tonnes to 7.6 million tonnes next year from 9 million tonnes this year, Kingsman said.

image

Read More

Agri-commodities prices go down as rainfall improves

With the rainfall picking up in the last few weeks, prices for agri-commodities like sugar, turmeric, potato, pepper and cotton have gone down.

Recommended for you

Advertisements

Quick Links

Market News

Welspun Corp zooms 20% on robust Q4 results

The company reported a consolidated net profit at Rs 144 crore in March quarter against Rs 12.62 crore in a year ago quarter.

Are markets heading for a long-term bear phase?

It's been a roller-coaster ride since 2015 Budget, which was among the most eagerly awaited in recent memory

MM Auto Industries withdraws IPO application

Firm is the third to pull out of an IPO this year, the other two being Videocon D2H and CL Educate

Piramal lends Rs 225 cr to Ahmedabad developer

Land was bought for Rs 389 cr, wherein Ganesh Housing brought in Rs 189 cr and Piramal brought in Rs 200 cr

Sensex, Nifty trading flat; broader markets outshine

Both the BSE Midcap and Smallcap indices, up 0.5% each have performed better than the front-liners

 

Back to Top